Frigid winter resulted in higher-than-expected fuel costs
If approved, new rates would begin to go into effect December 2018
RALEIGH, N.C. – Duke Energy Progress today made its annual filings with the North Carolina Utilities Commission (NCUC) for costs associated with fuel, compliance with the state's renewable energy portfolio standard (REPS), cost recovery under the Joint Agency Asset Rider (JAAR), and implementation of energy efficiency (EE) and demand-side management (DSM) programs.
In its filing, Duke Energy Progress is proposing an increase in monthly fuel costs as part of an annual adjustment of the actual cost of fuel used to power North Carolina homes and businesses through renewable, natural gas, nuclear and coal-fired generation. By law, the company makes no profit from the fuel component of rates.
Natural gas prices rose this winter due to heavy demand for residential, commercial, and industrial usage to meet customer energy needs during prolonged freezing conditions. These increased prices, coupled with high demand, contributed to an under collection for the cost of fuel over the past year. The elevated demand for power resulted in the highest energy usage week on record in the Carolinas.
The fuel rate is based on the projected cost of fuel used to provide electric service to the company's customers, plus a true-up of the prior year’s projection. The NCUC is responsible for reviewing the actual fuel costs required to serve customers to ensure an accurate adjustment is made each year.
The percentage change on a typical bill would be an average increase of 7.1 percent for residential customers, 10 percent for commercial customers and 4.8 percent for industrial customers. The total monthly impact of all rate changes for a typical residential customer using 1,000 kilowatt-hours (kWh) per month would be an increase of $8.12, from $115.09 to $123.21.
The new fuel, REPS and JAAR rates would go into effect Dec. 1, 2018, and the new EE and DSM rates would go into effect Jan. 1, 2019.
Helping customers save
Duke Energy Progress works to actively manage its fuel contracts to keep fuel costs as low as possible for customers. Savings achieved from the joint dispatch of Duke Energy’s generation fleet in the Carolinas also help to minimize the company’s fuel costs.
Duke Energy Progress is also committed to helping customers take control of their energy use and manage their bills. The company offers energy-saving tips and innovative efficiency programs for every budget to help customers realize additional savings.
For example, the Home Energy House Call is a free in-home energy assessment, valued at $180, designed to give Duke Energy customers more information about how they use energy in their home and strategies to save money on their monthly bill.
To learn more about these programs, visit duke-energy.com/savings.
Duke Energy Progress
Duke Energy Progress owns nuclear, coal, natural gas, renewables and hydroelectric generation. That diverse fuel mix provides about 12,800 megawatts of owned electric capacity to approximately 1.5 million customers in a 32,000-square-mile service area of North Carolina and South Carolina.
Duke Energy Progress is a subsidiary of Duke Energy (NYSE: DUK).
Headquartered in Charlotte, N.C., Duke Energy is one of the largest energy holding companies in the U.S., with approximately 29,000 employees and a generating capacity of 49,500 megawatts. The company is transforming its customers’ experience, modernizing its energy grid, generating cleaner energy and expanding its natural gas infrastructure to create a smarter energy future for the people and communities it serves.
The company’s Electric Utilities and Infrastructure unit serves approximately 7.6 million retail electric customers in six states – North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky. Its Gas Utilities and Infrastructure unit distributes natural gas to approximately 1.6 million customers in five states – North Carolina, South Carolina, Tennessee, Ohio and Kentucky. Its Commercial Renewables unit operates a growing renewable energy portfolio across the U.S.
A Fortune 125 company, Duke Energy was named to Fortune’s 2018 “World’s Most Admired Companies” list and Forbes’ 2018 “America’s Best Employers” list.
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